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Was the Citigroup bailout a good idea?

WASHINGTON – After all is said and done, taxpayers will make a $12 billion profit on the government's $45 billion bailout of Citigroup.

The Treasury Department said late Monday that it had struck a deal to sell its remaining holdings in Citigroup common stock, about 2.4 billion shares. With the proceeds of the sale, priced at $4.35 a share, the government will have realized $57 billion on its bailout package for the big bank.

"By selling all the remaining Citigroup shares today, we had an opportunity to lock in substantial profits for the taxpayer and avoid future risk," said Tim Massad, the Treasury official who heads up the bailout program.

Answer Question
 
sweet-a-kins

Asked by sweet-a-kins at 10:16 AM on Dec. 7, 2010 in Politics & Current Events

Level 34 (67,502 Credits)
Answers (13)
  • figure skating

    tnmomofive

    Answer by tnmomofive at 10:28 AM on Dec. 7, 2010

  • Where is my check?
    itsmesteph11

    Answer by itsmesteph11 at 10:28 AM on Dec. 7, 2010

  • sweet-a-kins

    Comment by sweet-a-kins (original poster) at 10:29 AM on Dec. 7, 2010

  • Where is my check?

    Agreed.
    Anonymous

    Answer by Anonymous at 10:31 AM on Dec. 7, 2010

  • No bailout is ever a good idea. If a business cannot make it on their own, they should be allowed to die out naturally and accept the consequences.
    HistoryMamaX3

    Answer by HistoryMamaX3 at 10:34 AM on Dec. 7, 2010

  • No bailout is ever a good idea. If a business cannot make it on their own, they should be allowed to die out naturally and accept the consequences.


    True. My husbands company was not given a bailout he had no choice but to sell and 120 people are out of work now. My husband had only 40 employees but other companies that made parts for his company went under when he sold. Really stinks but no one is helping the smaller companies.
    Anonymous

    Answer by Anonymous at 10:36 AM on Dec. 7, 2010

  • If indeed ALL the facts are contained here, then great.
    After seeing the celebration over GM, and the announcement about GM's "success" which omitted major losses on the part of the taxpayer, I am suspicious about creative accounting.

    As HistoryMama says, no Federal bailout is a good idea:
    1) it is unConstitutional. The Federal gov't is not allowed to do it. A State gov't could ...
    2) It puts a wrench into the works by preventing a failing business from having to adjust to reality. Plus it oppresses other businesses which ARE serving their customers well and ARE succeeding.

    3) And this is the big one: A business which goes into bankruptcy DOES NOT DIE OUT. If GM had gone into bankruptcy, those workers would still have their jobs. But the union bosses would have had to renegotiate the union contracts w/ a judge. The GM deal saved union bosses' profits, not jobs.
    waldorfmom

    Answer by waldorfmom at 10:45 AM on Dec. 7, 2010

  • Completely agree with HistoryMama and Waldorf.

    QuinnMae

    Answer by QuinnMae at 10:49 AM on Dec. 7, 2010

  • Anon, the affects of your hubs businesss going out of business and some place like citigroup is huge

    sweet-a-kins

    Comment by sweet-a-kins (original poster) at 11:01 AM on Dec. 7, 2010

  • I don't like the bailouts, but I'm glad something good came out of it.

    The end doesn't justify the means, but I'll mollify myself with the fact that Congress has 12 billion more to waste. Betcha they eat well today.

    Oh, wait. They eat well, everyday.
    lovinangels

    Answer by lovinangels at 11:06 AM on Dec. 7, 2010

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